The invention is generally related to computers and computer software, and to the provision of real estate brokerage and associated services to users coupled to an electronic communications medium.
Selling and buying real property is generally a time-consuming process requiring the assistance of several professional services at a considerable cost. The typical seller is unfamiliar with the marketing required to sell their property and cannot access marketing channels used by real estate agents, such as the Multiple-Listing Service (MLS). Also, the typical seller does not have sufficient familiarity with comparable sales in their area to assess the market price for their property. If a potential buyer is located, the typical seller does not have the legal resources necessary to negotiate a purchase contract and to close the transfer. Consequently, sellers often use seller agents to list and show the property for significant commissions, as much as 6% or 7% of the sale price, even when the agents perform a very small service. In addition, sellers typically do not have the ability to sell by owner on an equal footing, and thus may have no real alternative other than paying the large commission.
Typical buyers are at a similar disadvantage in finding and purchasing real property such as a home. Often buyers are unfamiliar with the area and what properties are listed for sale. Even if able to access a publicly-available Multiple-Listing Service (MLS), buyers generally cannot gain access to sales data to assess reasonable market values. Once a property is located, the typical buyer does not have the legal resources necessary to negotiate a purchase contract and to close the transfer.
Real estate transactions are typically accomplished through an assortment of communication systems that are largely not integrated and often not even electronic communication. Each party (e.g., buyer, buyer""s agent, seller, seller""s agent, title provider, mortgage provider, real estate attorney, inspectors) generally keep their own personal schedules. The parties have to contact one another to establish appointments. This may be exceedingly difficult if more than two of the parties have to find mutually convenient times. Also, having to contact parties by telephone is often inadequate due to unavailability.
Moreover, the myriad of scheduling details that occur in negotiating and closing a purchase contract for real estate property can easily be overlooked. For example, a buyer and the seller may be unaware that state regulations require certain inspections or that certain types of mortgage applications (e.g., VA loan) require a certain period of time and additional procedures (e.g., termite inspection). Consequently, these parties may not even be aware of these scheduling considerations when negotiating a purchase contract.
Attempting to avoid the high commission of real estate agents means difficulty in negotiating the purchase contract. Sellers and buyers may not have ready access to an appropriate form purchase contract. Assistance in completing the form purchase contract may not be available at minimal cost. In addition, the physical shuttling of offers and counter offers between the parties may impose a time consuming burden, and may make negotiating more emotionally difficult. Also, tracking the number of changes to the purchase contract during negotiation is difficult, especially given methods of modification including handwritten changes and faxed changes. Furthermore, a party making the pending offer may benefit from knowing whether the other party has received the document without giving an impression of being anxious.
The invention addresses these and other problems associated with the prior art by providing an apparatus, program product and method that assist in the automated and efficient provision of real estate services, particularly in the area of facilitating real estate sales transactions.
Consistent with one aspect of the invention, brokering a real estate transaction is facilitated by electronically communicating property information to potential buyers over a computer network such as the Internet. The property information is stored in a property database. The transaction is facilitated by one or more real estate documents retrievable by the buyer or the seller. By managing the flow of information electronically, the need for professional assistance is minimized, along with the associated costs.
Consistent with another aspect of the invention, negotiation during a transaction includes electronically generating an offer by revising an electronic form under the direction of the first party, either the seller or the buyer. This electronic form includes immutable contract terms and mutable contract terms. The buyer or seller making the offer is interactively assisted in completing the form. The revised electronic form is electronically transmitted to the other party. The second party may subsequently generate a counter offer by supervising changes to the mutable contract terms and by having the counter offer electronically transmitted to the first party. Each version of the electronic form is tracked as to status and content.
Consistent with a further aspect of the invention, execution of the transaction is facilitated by receiving disclosure information from a seller via electronic communication so the disclosure information may be stored, associated with a property record identifying a real estate property, and electronically communicated to another party, such as a buyer or a third-party facilitator.
Consistent with an additional aspect of the invention, conduct of the transaction is facilitated by receiving scheduling information from the buyer party and/or the seller party via electronic communication to the other party.
These and other advantages and features, which characterize the invention, are set forth in the claims annexed hereto and forming a further part hereof. However, for a better understanding of the invention, and of the advantages and objectives attained through its use, reference should be made to the Drawings, and to the accompanying descriptive matter, in which there are described exemplary embodiments of the invention.